When Brazil Can Generate a Product Using Fewer Labor Hours

question 104

Multiple Choice

When Brazil can generate a product using fewer labor hours and resources than the United States,an economist would say that Brazil had

• A)a comparative advantage in production of the product.
• B)an absolute advantage in production of the product.
• C)a higher opportunity cost of producing the product.
• D)no incentive to import the product,regardless of the cost-price conditions for other products.

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Definitions:

Cocktail Party Effect

The brain's ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when one hears their name in a noisy room.

Driving

The act of controlling and operating a vehicle, typically an automobile, as a means of transportation from one location to another.

Inattentional Blindness

A psychological phenomenon whereby an individual fails to perceive an unexpected stimulus in plain sight, due to the focus of attention elsewhere.

Selective Attention

The cognitive process of focusing on one particular object or task in the environment while ignoring other irrelevant stimuli.